Credit conditions for medium-sized and medium-sized enterprises tightened again

In the coming months, credit conditions for medium-sized and medium-sized enterprises will be tightened again. If you, as an SME, want to apply for a loan from the bank, you can prepare yourself well to get this done.

In the first quarter of 2013, credit conditions for small and medium-sized enterprises have already been adjusted and the end of these adjustments is not yet over.

Last Wednesday, the Dutch Central Bank (DNB) published a survey showing this. More and some banks will continue to maintain their adjusted credit conditions in the second quarter of 2013. Some banks will adjust and tighten their credit acceptance criteria even further

Examples of these changes include:

- A smaller credit size

- A collateral of higher values and stricter requirements

- Higher interest rates

The requirements for the capital position of small and medium-sized enterprises will also be increased.

Hans Biesenheuvel (chairman of MKB-Nederland) made his statement about these changes last Wednesday via BNR Nieuwsradio. 'I understand that banks have to think about their balance sheets. But this does cut off SMEs from credit." 'The circumstances are difficult, but there are still a lot of good companies. Banks must continue to provide tailor-made solutions.'

Declining lending and increasingly stringent requirements are holding back more and more SMEs.

The reason for the tightening of credit conditions again lies in the poor economy of the Netherlands. Banks are being made even more cautious than they already were. As a result, the banks want to keep more money in reserve and grant less and less credit. ING says that it has sufficient balance sheet space for the loans.

'There is plenty of money available, but demand has also decreased', but this does not only apply to ING.

The DNB survey shows that 83% of banks saw a decline in demand for credit in the first quarter of 2013. For the second quarter of 2013, too, banks are optimistic and expect demand for credit to decline.

"SMEs are having a hard time," says a spokesperson for ING. "When it comes to lending,  the most important question is whether the company is able to meet its interest and repayment obligations. The willingness of the entrepreneur to make timely adjustments is also increasingly being examined. In addition to the general economic situation, the DNB also looks more specifically at the sector risks and the prospects for certain companies. In many sectors, but especially in the real estate sector, collateral is increasingly critically assessed. 

Source: www.fd.nl